MONTREAL, March 21, 2012 /PRNewswire/ - Domtar Corporation (NYSE: UFS)
(TSX: UFS) today announced that the tender offer for its outstanding
10.75% Notes due 2017, 9.5% Notes due 2016, 7.125% Notes due 2015, and
5.375% Notes due 2013 (collectively, the "Notes") expired at 12:00
midnight, New York City Time, on Tuesday, March 20, 2012 (the
"Expiration Time"). As of the Expiration Time, the aggregate principal
amount of each series of Notes validly tendered and not withdrawn was
as set forth in the table below. Because the aggregate consideration
for all Notes validly tendered and not withdrawn does not exceed the
maximum payment amount of $250 million, the Company will purchase all
Notes validly tendered and not withdrawn.

Title of Security

CUSIP Number

Aggregate Principal Amount Tendered

10.75% Notes due 2017

257559 AG9

$106,933,000

9.5% Notes due 2016

257559 AD6

$31,150,000

7.125% Notes due 2015

257559 AC8

$46,538,000

5.375% Notes due 2013

257559 AB0

$1,260,000

The complete terms and conditions of the tender offer are described in
the Offer to Purchase, dated February 22, 2012, of the Company (the
"Offer to Purchase"). The Company has engaged J.P. Morgan Securities
LLC and Deutsche Bank Securities Inc. to act as dealer managers in
connection with the tender offer. Questions regarding the tender offer
may be directed to J.P. Morgan at (212) 834-4811 (collect) or (866)
834-4666 (U.S. toll free) or Deutsche Bank Securities at (212) 250-2955
(collect) or (866) 627-0391 (U.S. toll free). Requests for
documentation may be directed to Global Bondholder Services
Corporation, the depositary and information agent for the tender offer,
at (212) 430-3774 (for banks and brokers) or (866) 470-4200 (U.S. toll
free).

This press release is neither an offer to purchase nor a solicitation of
an offer to sell the Notes or any other security. The tender offer is
being made only by the Offer to Purchase and the related letter of
transmittal. The offer is not being made to noteholders in any
jurisdiction in which the making or acceptance thereof would not be in
compliance with the securities, blue sky or other laws of such
jurisdiction. In any jurisdiction in which the offer is required to be
made by a licensed broker or dealer, it shall be deemed to be made on
behalf of the Company by the dealer managers or one or more registered
brokers or dealers licensed under the laws of such jurisdiction.

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About Domtar
Domtar Corporation (NYSE: UFS) (TSX: UFS) designs, manufactures, markets
and distributes a wide variety of fiber-based products including
communication papers, specialty and packaging papers and adult
incontinence products. The foundation of its business is a network of
world class wood fiber converting assets that produce papergrade, fluff
and specialty pulps. The majority of its pulp production is consumed
internally to manufacture paper and consumer products. Domtar is the
largest integrated marketer of uncoated freesheet paper in North
America with recognized brands such as Cougar®, Lynx® Opaque Ultra, Husky® Opaque Offset, First Choice® and Domtar EarthChoice®. Domtar is also a leading marketer and producer of a complete line of
incontinence care products marketed primarily under the Attends® brand name. Domtar owns and operates ArivaTM, an extensive network of strategically located paper and printing
supplies distribution facilities. In 2011, Domtar had sales of US$5.6
billion from nearly 50 countries. The Company employs approximately
9,100 people. To learn more, visit www.domtar.com.

Forward-Looking Statements
All statements in this news release that are not based on historical
fact are "forward-looking statements." While management has based any
forward-looking statements contained herein on its current
expectations, the information on which such expectations were based may
change. The Company is under no obligation, and expressly disclaims
such obligation, to update, alter or revise these forward-looking
statements, whether as a result of new information, future events, or
otherwise. These forward-looking statements rely on a number of
assumptions concerning future events and are subject to a number of
risks, uncertainties, and other factors, many of which are outside of
our control that could cause actual results to materially differ from
such statements. Such risks, uncertainties, and other factors include,
but are not necessarily limited to, those set forth under the captions
"Forward-Looking Statements" and "Risk Factors" of the latest Annual
Report on Form 10-K filed with the Securities and Exchange Commission
as periodically updated by subsequently filed Form 10-Q's.